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And yet NKLA still has a $5B market cap despite the entire company being 100% fraud. Amazing. [1] https://finance.yahoo.com/quote/nkla
Thank /r/WSB for that. No one can short dog companies anymore for fear of being short squeezed.
I thought Elon was the Electric car maker most likely to get caught perpetuating a fraud?
This should not be surprising to anyone. Arstechnica has followed Nikola's terrible and obvious fraud(s) for years now: https://arstechnica.com/cars/2021/02/nikola-admits-to-making... https://arstechnica.com/cars/2020/12/nikola-stock-craters-af... https://arstechnica.com/cars/2020/09/nikola-patented-a-stole... And many more... The speculation around this stock has been insane for many years now: https://arstechnica.c…
Financial markets are not coupled to real economics anymore. They’re coupled to speculative gamesmanship. Whoever can generate statistics to captivate the masses who do not understand them, via press releases, and media blitzes. That sounds cynical, but I “hob nob” with people invited to Davos, and run depts at Ivy League schools. Behind closed doors these are the conversations I’ve been privy too. How to captivate t…
Was the 1920's stock bubble and 1929 crash just following fundamentals the whole time?
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I am more surprised that Mazda's market cap is only $5B. That's just about the same as Duolingo. Interesting times we live in, really.
Traditional car stocks are at bargain( ) prices now. ( ) some may read that as sane, or trading according to fundamentals.
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Still a $5b company: https://www.google.com/finance/quote/NKLA:NASDAQ
Which is surprising....do they even have a car in the works?
The only thing the stock price reflects is how valuable the stock is. Nothing more, nothing less.
If each person of earth decided that their life goal was to own 100 nikola shares "to feel alive" or "own a piece of their failure" or whatever, their stock price would skyrocket, and stay high as long as everybody holds.
Those who value stock in terms of a company fundamentals, are making the assumption that at least most other participants in the market will value the stock in terms of its fundamentals as well.
That assumption might be true for some stocks. It isn't true for stocks that "people ""just"" like" (or dislike) and are willing to pay a premium to buy, because it has some other value to them.
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and the likes of Matt Levine (and Bloomberg) are just bitter Matt Levine has also struck me as more amused-- and perhaps confused-- than bitter about this.
Matt writes brilliantly on irrational, ridiculous, silly happenings in the world of finance. My guess is he's happy for a such a steady stream of subject matter.
BTW, you can subscribe to the email newsletter for Money Stuff, then you can access it without paying for a subscription to Bloomberg.
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I am more surprised that Mazda's market cap is only $5B. That's just about the same as Duolingo. Interesting times we live in, really.
One company has endless growth potential, 80% gross margins, and every new customer served has marginal cost implications to the business. The other one does not. I think you can guess which one is which. For the record - I'm just as skeptical as many others are about tech valuations, but there is a legitimate reason to value companies they way we do, it's just not always a "its tech, so it has to be valued at BLAH",…
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Even the name screams transparent fraud, a ridiculously obvious attempt to associate with Tesla. Weren't there VCs who put money into this? What were they thinking? Were they being amoral and hoping to ride this pump and dump or did they actually buy into this shit?
> a ridiculously obvious attempt to associate with Tesla. Nikola was building barely functional prototypes of their trucks years before Tesla was building barely functional Semi truck prototypes, for the record. > What were they thinking? Were they being amoral and hoping to ride this pump and dump or did they actually buy into this shit? Fundamentally, what have they done that's so evil compared to, say, the multitu…
Tesla was run by a technical founder (Stanford PhD pedigree fwiw) that knows his shit (though a bit crazy and prone to exaggeration and hyperbole) and the company has some of the best engineers in the world employed there.
Nikola was founded by a dude with zero technical background who as far as anyone can tell had no serious engineering expertise in-house. He even hired his brother--a guy who used to install carpets--to run Nikola's hydrogen infrastructure.
These two companies aren't even in the same league imo
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> Weren't there VCs who put money into this? Definitely, but worse than that, real companies that really should have known better. GM associated themselves. For what reason I can’t figure out. It must have been high up because the GM engineers I know all knew it was a 100% scam. It’s like anything else that confuses me in business. Some idiot made a mistake, sure, but then their boss approved that, and all the other…
One of the NKLA board members Steve Girsky was previously a Vice Chairmen at GM and likely facilitated this deal. I think it needs to be investigated further and Mary Barra should be forced to provide the evidence of due dilligence that GM collected during the closing of the deal.